Key Takeaways
- Form 8832: entity classification election.
- Retroactive: up to 75 days before filing.
- Prospective: up to 12 months after filing.
- Late relief (Rev. Proc. 2009-41): within 3 years 75 days.
- Late relief requires: consistent filing + reasonable cause.
- Signature: all members OR authorized officer/manager.
Last updated: January 2026
Form 8832 & Rev. Proc. 2009-41
Why This Matters for the Exam
Know the timeline for Form 8832 and the late relief procedure.
Expect at least 2-3 questions on Form 8832.
Form 8832 Timeline
| Direction | Window |
|---|---|
| Retroactive | Up to 75 days before filing |
| Prospective | Up to 12 months after filing |
Timeline Example
| Desired Effective Date | Latest Filing Date |
|---|---|
| January 1, 2024 | March 16, 2024 (75 days) |
| January 1, 2025 | December 31, 2024 (prospective) |
Late Election Relief (Rev. Proc. 2009-41)
| Requirement | Description |
|---|---|
| Time frame | Within 3 years 75 days of desired date |
| Consistent filing | Filed returns as if election made |
| Reasonable cause | Explain failure (inadvertence, reliance) |
Reasonable Cause Examples
| Acceptable | Not Acceptable |
|---|---|
| Forgot/did not know | Strategic delay |
| Tax professional failed | Disagreement with rules |
| Death/illness | Cost avoidance |
| Natural disaster |
Signature Requirements
| Method | Who Signs |
|---|---|
| Preferred | All members |
| Alternative | Authorized officer, manager, or member |
Real-World Scenario
Scenario: LLC wants Jan 1, 2024 effective date. Files Form 8832 on April 1, 2024.
- 75-day window: Ends March 16, 2024.
- April 1 > March 16
- Result: Need late relief under Rev. Proc. 2009-41.
On the Exam
Expect 2-3 questions on Form 8832, typically:
- Timeline Questions: "Deadline for Jan 1 effective?"
- Late Relief Questions: "What is required for Rev. Proc. 2009-41?"
- Signature Questions: "Who can sign Form 8832?"
The key is to remember: 75 days retroactive. 12 months prospective. Late = 3 years 75 days + consistent filing + reasonable cause.
Test Your Knowledge
LLC wants Jan 1, 2024 effective. Deadline without late relief?
A
B
C
D
Test Your Knowledge
Late relief under Rev. Proc. 2009-41 requires?
A
B
C
D
Test Your Knowledge
Who can sign Form 8832?
A
B
C
D